£2 billion waste-to-energy scheme powers ahead

A multi-billion-pound infrastructure project is set to modernise waste management across the North East following a landmark funding agreement.

Viridor and Tees Valley Energy Recovery Limited have reached financial close on the Tees Valley Energy Recovery Facility, a £2 billion, 29-year public-private partnership involving seven local councils.

The project will provide a long-term solution for treating waste that cannot be recycled, giving councils greater control over its management while supporting wider sustainability goals.

Set to be built at the Teesworks site in Redcar, the facility will process around 450,000 tonnes of waste annually and generate enough electricity to power the equivalent of 60,000 homes.

Construction is due to begin later this year, with Kanadevia Inova appointed as engineering procurement and construction (EPC) contractor, further strengthening its track record of delivering major energy recovery projects alongside Viridor.

The plant is expected to be operational by 2030.

Richard Belfield, group development director at Viridor, added: “Today we are celebrating the fact that Tees Valley Energy Recovery Facility has reached financial close and will join the growing Viridor EfW fleet. 

“This project underpins our continued ambition to offer a scalable, safe and long-term solution to manage residual waste, while generating power for the local grid.

“Viridor is proud to be working with the seven councils and Kanadevia Inova as we progress this project. 

“The plant will provide local jobs and economic regeneration, as well as being a responsible neighbour to the local community and the wider region.”

Fabio Dinale, executive vice-president of business development at Kanadevia Inova, added: “The Kanadevia Inova team is delighted to have signed another EPC contract with Viridor and, with Notice to Proceed being granted, we look forward to starting full construction works on the Tees Valley Energy Recovery Facility.” 

The development will also support regeneration of the former industrial site and create jobs, with hundreds expected during construction and around 50 permanent roles once operational.

Officials project forms part of a broader effort to reduce reliance on landfill while supporting the region’s transition to more sustainable waste management.

Denise McGuckin, chief executive of Hartlepool Borough Council, added: “We are very proud to reach the delivery phase of this critical infrastructure project for the North East, which will provide a safe, reliable, sustainable and affordable solution for the waste left over after recycling and re-using as much as we can.

“We are delighted to partner with Viridor, which is a highly experienced operator of UK energy recovery infrastructure, and we look forward to working with them to deliver, not just this vital facility, but a wider range of benefits – including employment, training and economic opportunities – to the communities we serve.”

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